Natural Gas Price Forecast – Natural Gas Markets Finding Support Again

Natural gas markets get a little bit of a boost during the trading session on Thursday as the inventory number came out at lower figures than anticipated. This shows that natural gas is starting to get used to more.
Christopher Lewis
Natural gas daily chart, November 22, 2019

The natural gas markets have been a bit noisy during the trading session on Thursday as the inventory figures have come out. They have come out more bullish than anticipated, as the reading was -94 billion, as opposed to the anticipated -86 billion. This suggests that the market is probably going to continue to see a lot of back and forth, but as we are in the beginning of the coldest part of the year, it makes quite a bit of sense that natural gas will continue to be used up by the northern hemisphere. With that, we are typically in a cyclically bullish time.

NATGAS Video 22.11.19

At this point, we can break above the highs from the trading session on Thursday it’s likely that the market could then go to the $2.75 level, which is where a gap is formed. If we can break above the top of that gap, then the market is free to go much higher, with the initial target being the $3.00 level. At this point, I don’t have any interest in shorting natural gas although I do recognize that there is a gap underneath at the $2.40 level that has yet to be filled, but at this point we don’t necessarily have to go filling it now, it could be something that happens much later. All things being equal I expect a lot of noise, but I do believe that value hunters will continue to return to this market. I have no interest in trying to go against the cyclical trade right now.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.